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New crowdfunded property deal for DomaCom

Tim Stewart

— 1 minute read

12 July 2017

DomaCom has reached an agreement with a property developer to help launch a residential community land project in regional Victoria.

The deal with Akuna Lifestyle Estates will involve a $6 million capital raising comprising $1.65 million to acquire the land and $4.35 million for development planning, approvals and construction of the civil works, and common facilities including a clubhouse, sports centre, pool and bowling green, according to a statement.

The Cobram-based project is planned to be developed and sold in eight stages over three to four years, starting this year.

DomaCom said it will use its fractional property investment platform to offer an attractive yield to investors for acquisition and development of the land.

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In addition, it is targeting a 15 per cent annualised return on the completed project with an estimated ongoing rental income of 8 per cent per annum.

DomaCom chief executive Arthur Naoumidis said projects with a social conscience are important to many investors.

“Crowdfunding enables this to happen across a number of investments with only a small asset allocation to each so investors can feel good about their investment without going over the top.”

Akuna founding director Graeme Jacobs said that, under the proposal, it will develop the land and then sell the homes with 49-year leases at an average price of $265,000 per house.

“This Cobram housing community will give investors the opportunity to secure high yielding returns from the development profit and land-rental activities in an exciting project that will deliver a real social objective – giving retirees affordable housing,” Mr Jacobs said.